SB1430sam001 102ND GENERAL ASSEMBLY

Sen. Donald P. DeWitte

Filed: 3/29/2021

10200SB1430sam001 LRB102 11208 RPS 24493 a

AMENDMENT TO SENATE BILL 1430

AMENDMENT NO. ______. Amend Senate Bill 1430 by replacing everything after the enacting clause with the following:

"Section 1. This Act may be referred to as the Local Pension Modernization Act.

Section 5. The Illinois Pension Code is amended by adding Section 7-101.5 as follows:

(40 ILCS 5/7-101.5 new)

Sec. 7-101.5. Alternative retirement plan; local control of benefits.

(a) The governing body of a municipality or instrumentality may, at any time on or after the effective date of this amendatory Act of the 102nd General Assembly, provide by ordinance or resolution, whichever is applicable, for an alternative retirement plan, either in addition to or in lieu of the existing plan under this Article, for its eligible new employees. The alternative retirement plan shall apply only to persons who have not participated in the existing plan under this Article.

(b) The alternative retirement plan may include a defined-benefit component, a defined-contribution component, or both, and may, but is not required to, include disability or survivor benefits and any other provisions or benefits that are permitted under federal law. The alternative retirement plan is not required to provide any minimum level of benefits and need not provide any benefits at all, other than mandatory Social Security coverage if applicable.

(c) Service credit received under an alternative retirement plan may not be transferred to any other pension fund or retirement system and may not be used under the Retirement Systems Reciprocal Act.

(d) Providing an alternative retirement plan does not release the municipality or instrumentality from the obligation of continuing to participate under this Article with regard to participants in the existing retirement plan. In no event may the municipality or instrumentality in any way diminish or impair the rights or benefits of participants in the existing retirement plan.

(e) Persons participating in an alternative retirement plan under this Section shall be deemed to be members of the Fund who participate in an alternative retirement plan and shall remain subject to the provisions of the Agreement with the State Agency, as provided in Section 7-170, for Social Security purposes to the extent permitted under federal law. Notwithstanding any provision of this Article to the contrary, the alternative retirement plan need not comply with any other mandatory provision of the existing retirement plan.".